TERNIENERGIA: the Board of Directors resolved to close the share capital increase without offering further tranches

• The resources collected through the first phase of the transaction are considered adequate to support the company’s growth
• The company’s business plan is to be approved within the month of February

The Board of Directors of TerniEnergia, a company operating in the renewable energy field, listed on Star segment of Borsa Italiana, today resolved unanimously not to proceed further with further tranches of the share capital increase by payment amounting to a maximum of Euro 60 million and reserved exclusively to qualified Italian investors and foreign institutional investors, with the exception of U.S., Australia , Japan and Canada and with the exclusion of option right pursuant to art. 2441, fifth paragraph, of the Civil Code, that was approved by the Company’s extraordinary shareholders’ meeting on August 6th , 2010.

The Company, given the market conditions at the date of the issuance, had decided to carry out the share capital increase transaction for an amount that would have been sufficient for achieving an appropriate free floating for the admission to STAR segment of the MTA, that took place on December 28th 2010.

The first tranche of the share capital increase, that was set by TerniEnergia in 3 million shares, was fully subscribed on November 8th , 2010 for a total consideration of Euro 10.8 Million, with an offering price of new shares of Euro 3.60 – per share.

According to the resolution approved by the Board of Directors, the Chairman and CEO, Mr. Stefano Neri said:

“The Board of Directors, decided not to proceed further with the share capital increase because the resources that were collected through the first tranche of the transaction, together with the solid balance sheet and income, are considered suitable to enhance and consolidate the leading position achieved by the Group in the photovoltaic sector. Thanks to the extremely positive operating results, we should update the business plan by identifying new targets according to the company’s growth. The plan will be presented to investors and analysts within the month of February”.